The 22-year-old is a graduate of the Rovers Academy and has established himself as a regular starter since his first-team debut early in 2011.
His performances have also earned him international recognition and he captained England at the 2011 FIFA Under-20 World Cup.
Lowe has been an ever-present this season, and he is delighted to have secured his future with the club, saying: "I'm over the moon. I love playing here and I have done since I started. To extend my stay again is another step in the right direction.
"I have worked hard to improve all aspects of my game and I feel my performances this season reflect that. I will keep pushing myself to get better and to help get results for the team.
"Gary (Bowyer) has instilled a lot of confidence and belief in me, and you need that to play to your potential. He has given me the freedom to show what I can do and for that I am very grateful."